Latin America In-mold Labels Market

Latin America In-mold Labels Market Outlook (2023 to 2033)

Latin America in-mold labels industry size is expected to flourish at a CAGR of 5.8% in the next ten years. The market value is projected to increase from US$ 311.6 million in 2023 to US$ 547.9 million by 2033. The market was valued at US$ 295.8 million at the end of 2022 and is anticipated to exhibit Y-o-Y growth of 5.3% in 2023.

As per Future Market Insights (FMI), the food segment by end use held a share of about 42.0% in 2022 in the Latin America in-mold labels market. The market is predicted to create an incremental opportunity of US$ 252.0 million and is predicted to expand 1.9 times its current value from 2023 to 2033.

There is a growing emphasis on product presentation and branding in the region, particularly in food & beverage, cosmetics, and automotive sectors. In-mold labels offer visually appealing and high-quality labeling solutions that enhance the aesthetics of products. Hence, it makes them more attractive to millennial consumers.

There is an increasing focus on sustainability and environmentally friendly packaging solutions in Latin America. In-mold labels can be produced using recyclable materials, reducing waste and promoting a circular economy. This aligns with the region's growing awareness and preference for sustainable practices.

Technological advancements have made in-mold labeling more efficient and cost-effective, driving its adoption in Latin America. Improvements in printing technologies such as digital printing would enable companies to produce in-mold labels with intricate designs, vibrant colors, and high-resolution graphics. This would further help in meeting the demand for visually striking packaging.

Expanding middle class in Latin America has also led to increased spending and a greater emphasis on product differentiation. In-mold labels offer a premium and customized packaging solution that helps brands stand out in a competitive market, thereby driving their demand.

The cosmetics sector in Latin America places great importance on packaging aesthetics and designs that reflect brand image and attract consumers. In-mold labels provide a high-quality and customizable labeling solution that allows cosmetics companies to create unique & eye-catching packaging designs. Ability of these labels to offer enhanced visual appeal and branding opportunities for cosmetic products is set to aid demand.

In-mold labels also offer durability and resistance to various environmental factors such as moisture, chemicals, and UV exposure. This is particularly important in the cosmetics sector, where products often come into contact with liquids, creams, and other substances.

In-mold labels provide a reliable labeling solution that withstands these conditions. These help in ensuring that the product information and branding remain intact throughout the product's lifecycle. This property of in-mold labels is projected to surge their sales across Latin America.

How is Demand for Aesthetically Appealing Packaging Driving In-mold Labels Sales in Latin America?

Growing demand from sectors such as chemicals, pharmaceuticals, and food & beverages is a leading driver of the Latin America in-mold labels industry. These sectors are looking for high-quality, cost-effective, and sustainable labeling solutions that can help them to improve their branding and product differentiation. In-mold labels offer several advantages over traditional labels, including:

• Durability: In-mold labels are more durable than traditional labels. They can withstand harsh environmental conditions.
• Aesthetics: In-mold labels can be designed to create a more visually appealing and aesthetically pleasing appearance on the packaging.
• Security: In-mold labels can be made tamper-evident, which can help to protect products from counterfeiting.
• Sustainability: In-mold labels can be made from recycled materials, which can help to reduce the environmental impact of packaging.

In-mold labels are becoming increasingly popular in a variety of sectors. Demand for in-mold labels is expected to continue to surge in the next ten years, as more businesses look for sustainable and cost-effective labeling solutions.

2018 to 2022 In-mold Label Sales Outlook in Latin America Compared to Demand Forecast from 2023 to 2033

Latin America in-mold labels industry showcased a CAGR of 2.6% during the historical period. It reached a market value of US$ 295.8 million in 2022 from US$ 267.4 million in 2018.

In-mold labels are applied in the process of manufacturing plastic containers. These labels are made up of the same material as that of the container.

The label acts as part of the container wall and hence provides higher strength to the container with lesser weight of the unit. These are made for the permanent or long shelf life of the label on containers.

Increasing use of in-mold labels for labeling where longer shelf life, amazing aesthetics, higher strength, and other such qualities are required would propel demand. Sectors incorporating in-mold labels in their packaging are food, beverage, pharmaceutical, domestic care, cosmetics, and others.

There has been an increasing focus on product differentiation and branding across various sectors in Latin America. In-mold labels offer unique and eye-catching designs that help products stand out on the shelves, attracting consumer attention and driving demand.

Advancements in printing and labeling technologies have made in-mold labels more accessible and cost-effective. Ability to produce high-quality and intricate designs on in-mold labels has expanded. It might lead to greater demand from companies looking to enhance visual appeal of their products.

Growing focus on sustainability has played a significant role in the rise of in-mold label demand. These labels can be made using recyclable materials, aligning with the increasing preference for eco-friendly and sustainable packaging solutions.

Durability and resistance of in-mold labels to various environmental factors such as moisture, chemicals, and UV exposure, have contributed to their popularity. Companies value longevity and integrity of these labels throughout the product's lifecycle. They would help in ensuring that the branding and product information remain intact.

Ismail Sutaria

Principal Consultant

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Why In-mold Labels are Being Preferred by Manufacturers Over Other Labels?

In-mold labels (IML) can help to save electricity in several ways. They can eliminate the need for separate labeling machines, which can use a significant amount of electricity.

In-mold labels can be molded directly onto the product, which reduces the need for energy-intensive processes such as printing and applying adhesives. These labels can also help to save labor cost in multiple ways.

In-mold labels eliminate the need for manual labeling, which can be a time-consuming and labor-intensive process. These labels can also be applied more quickly and easily than traditional labels, which can save time and labor costs.

Which Factors Might Hinder In-mold Label Demand in Latin America?

• Limited availability of specialized machinery and equipment for in-mold labeling might hamper demand.
• Potential compatibility issues between in-mold labels and specific packaging materials or products might be a barrier to demand.
• Lack of awareness and understanding of the benefits and capabilities of in-mold labels can hinder growth of sales.
• Competition from alternative labeling methods that offer similar benefits or cost advantages might impede the uptake of in-mold labels.
• Regulatory requirements and standards might impact the use of in-mold labels in certain sectors.
• Dependence on skilled workforce with expertise in in-mold labeling techniques could deter demand.

Country-wise Insights

How is Brazil Creating Lucrative Opportunities for In-mold Label Manufacturers?

Food Companies in Brazil to Look for Advanced In-mold Labeling Systems

Brazil food manufacturing sector might present a lot of opportunities for Latin America in-mold labels market. According to the Food Export Association, the food processing sector of Brazil was estimated to be US$ 171 billion in 2021. It had registered y-o-y growth of 16.9% from 2020.

Food manufacturers and ingredients suppliers are constantly looking for new suppliers & innovative products. Brazil continues to follow international food trends. Key players in the country are always looking to launch innovative products with high-added value.

There is also an increasing demand for new ingredients, further allowing manufacturers to make products with clean and clear labels. As a result, Brazil is anticipated to offer an incremental opportunity of US$ 38.9 million over the projected period.

Why is Mexico Considered a Leading Hub for In-mold Label Suppliers?

Pharmaceutical Companies in Mexico to Demand In-mold Labeling Equipment

The pharmaceutical sector of Mexico is the second-largest market in Latin America. It ranks at number 15 globally.

Mexico is known for producing medicines such as anti-inflammatory drugs, cancer treatments, and antibiotics. According to Wisconsin Economic Development Corporation, pharmaceutical sales in Mexico are projected to be US$ 13 billion in 2028.

As per Organization for Economic Co-operation and Development (OECD) data, health-related spending in Mexico increased from 5.4% in 2019 to 6.2% in 2021. Mexico is set to hold a share of around 18.4% in 2023 and expand at a CAGR of 4.9% from 2023 to 2033.

Category-wise Insights

Which Material is Set to Find Extensive Usage among In-mold Label Manufacturers?

In-mold Labeled Containers Made from Polypropylene to Gain Traction by 2033

Polypropylene (PP) is a thermoplastic material mainly used for in-mold labeling as it can be easily molded into any shape and size. PP is suitable to withstand high moisture and temperature. Hence, it can be applied to long lasting consumer goods.

Its high chemical resistance makes it an ideal solution for packaging products containing chemicals and solvents. Polypropylene segment is estimated to dominate as it is inexpensive and have high flexural strength compared to others. It is expected to hold a dominant Latin America in-mold labels market share of more than 71.1% in 2023.

Which is the Dominant End-user Segment of In-mold Labels in Latin America?

Food Manufacturing Firms to Make Use of In-mold Labeling Production Process

Food sector is one of the largest consumers of in-mold labels in Latin America. In-mold labelling fulfills the requirements of sterilized and tamper evident packaging. It also offers durability and permanence for food packaging.

It delivers maximum print quality and high resolution for enhancing brand recognition and branding. Food segment is set to hold a market share of more than 41.6% in 2023.

It is projected to create an incremental opportunity worth US$ 84.1 million during the forecast period. Online food delivery ecosystem has witnessed significant growth in recent years, driven by changing preferences and advancements in technology.

Competitive Landscape

In response to growing demand for sustainable packaging solutions, companies in Latin America in-mold labels industry are increasingly adopting eco-friendly practices. They would develop labels using recyclable materials, incorporate bio-based or compostable materials, and implement environmentally conscious manufacturing processes. They are doing so to reduce their carbon footprint.

Collaborations, partnerships, and acquisitions might play a significant role in growth strategies of key companies. They might form alliances with other market players, raw material suppliers, or technology providers. They would aim to enhance their product offerings, market reach, or manufacturing capabilities with collaborations.

Recent activities and mergers implemented by leading players in the market are:

• In April 2023, Multi-Color Corporation declared the addition of a new company, Türkiye-based Korsini. It is one of the top providers of in-mold label solutions.
• In January 2022, CCL Industries announced that it had purchased McGavigan Holdings Ltd. The latter is a privately owned renowned supplier of in-mold components for automotive interiors.
• In September 2021, Berry Global announced plans to expand its food packaging manufacturing facilities in North America. It would be a part of its long-term strategic growth commitments.

Scope of the Report

Latin America In-mold Labels Market Outlook by Category

By Process:

• Blow Molding
• Injection Molding
• Thermoforming

By Material:

• PP
• PET
• PS
• PE
• Paper

By Printing Method:

• Gravure
• Flexo
• Offset
• Screen
• Digital

By End Use:

• Food
• Beverage
• Pharma
• Homecare
• Cosmetics & Personal Care
• Automotive
• Others (Electronics, Building & Construction, Others)

By Country:

• Brazil
• Mexico
• Argentina
• Chile
• Colombia
• Peru
• Puerto Rico
• Ecuador
• Rest of Latin America